“Entrepreneurship Is the Best Option for Idealists” – Prof. Lingle

Yavnika Khanna for eCatalyst

If you were living in California in the 1970s there are chances your ‘gotta-have-it’ list would have ‘Pet Rocks’ enlisted. A raging fad in those days, ‘Pet Rocks’ are nothing but grey pebbles marketed as if they were live pets, Its pack described them as “an ideal pet - easy and cheap, and it had a great personality" And by the way, its creator Gary Dahl became a millionaire within six months selling these!

Probably one of the many interesting anecdotes of how entrepreneurs act as ‘change makers’ in society that came up during Prof. Christopher Lingle’s interactive session with young people of ‘Dhriiti- The courage within’ on 13th of July 2007. Dr. Lingle is the global strategist for eConoLytics.com, author of `The Rise and Decline of the Asian Century and Research Scholar at the Centre for Civil Society who will be in India until end September. eCatalyst summarizes some of his pertinent points:

Who is an entrepreneur?
Simply put:
An entrepreneur is an alert person who can innovate- creating new products for sale, someone who starts a business by providing a totally new way of solving his customers’ problems is considered to be entrepreneurial. The notion of incremental improvements should be accepted as being innovative too. Even creations which are none too useful in your personal opinion (as in the case of Pet-Rocks) may have value for a particular group of people – and this is known by their willingness to pay for the product or service.

For the Theory – Lovers:
In the thought-provoking book ‘The Wealth of Nations’, Adam Smith in 1776 explained clearly that it was not the benevolence of the baker but self-interest that motivated him to provide bread.

The famous economist John Stuart Mill described entrepreneurs as risk takers, the decision makers, and the individuals who desire wealth by managing limited resources to create new business ventures.

In 1934, Joseph Schumpeter stated that the entrepreneur is one who applies "innovation" within the context of the business to satisfy unfulfilled market demand.

Entrepreneurs contribute to the society in many ways

Entrepreneurs fulfill a need- gap in society. So the hungry have food wherever they are - even when in space! Using their creativity and innovation they are essentially society’s problem solvers.
They convey important information through prices and can break monopolies or duopolies- or even the price dynamics in favor of the people.

In fact, they contribute to society by providing employment to others. Some even prefer to explicitly ‘show the heart’ of their business through philanthropy.
Who make the best entrepreneurs?
• Idealists- who want change for the better, and want it now.
• The poor- ones with limited resources
• The mavens- those with innate sense of connecting with other people

And the Government spoils the party
Entrepreneurship is the best way to solve society’s income disparity. Government intervenes in the teensiest of things in their citizens’ lives. Unfortunately, the people at the bottom rung are hit the hardest when it comes to the most crucial aspect- earning their livelihoods. This means people who are rich have the means to get by and make more money, while the poor either operate illegally or get oppressed. The licenses, taxation and winding processes ensure that entrepreneurial abilities remain stifled.

It is but ironical that the poor have a wealth of entrepreneurial skills but suffer the greatest by government interventions.
So what can be done?
• Give up government’s titles- the government is ‘squatting’ on society’s precious resources- enforce private property
• Become an entrepreneur -despite the government-- as entrepreneurship and wealth empowers the individual and society